Bogus LTCG from Penny Stock Allegation Rejected for Genuine Long-Term Share Holding

PCIT Vs Gopalbhai T Patel (HUF) (Gujarat High Court) The Gujarat High Court dismissed the tax appeal filed by the Revenue under section 260A of the Income-tax Act, 1961, holding that no substantial question of law arose from the order of the Income Tax Appellate Tribunal. The dispute related to an addition of ₹7,15,679 made by the Assessing Officer on account of alleged unexplained income from sale of shares of Global Capital Markets Limited, treated by the Revenue as a penny stock transaction generating bogus long-term capital gains. The assessee had filed the return of income for Assessmen...